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IFF, DuPont N&B to complete merger today

February 01/2021

MOSCOW (MRC) -- IFF (New York) announced that it will complete its merger with DuPonts Nutrition & Biosciences (N&B) business today, reported Chemweek.

The deal creates a global ingredients and solutions leader serving consumer-oriented food and beverage, home and personal care and health and wellness end markets with proforma 2020 revenue of more than USD11 billion and EBITDA of approximately USD2.5 billion. The combined company will continue to operate under the name IFF. Shares of the combined companys common stock will trade on the New York Stock Exchange under the symbol IFF.

The deal, which values N&B at USD26.2 billion, was first announced in December 2019. Under the terms of the deal, DuPont shareholders will own 55.4% of the shares of the combined company and existing IFF shareholders will own 44.6%. The deal will be structured as a Reverse Morris Trust transaction that will be tax-free to DuPont shareholders. Upon completion of the transaction, DuPont will also receive a one-time $7.3-billion special cash payment, subject to certain adjustments.

The complementary portfolios also give the company leadership positions within the Taste, Texture, Scent, Nutrition, Enzymes, Cultures, Soy Proteins and Probiotics ingredient categories.

The companies previously stated that the resulting organization will comprise four divisions. Taste, Food & Beverage will combine IFFs Taste division and N&Bs Food & Beverage segment and represent approximately USD6.1 billion in pro forma 2019 net sales for the combined company. The Scent division will comprise IFFs Scent division, which represents approximately $2 billion in pro forma 2019 net sales. Health & Biosciences, representing approximately $2.3 billion in pro forma 2019 net sales, will combine N&Bs current Health & Biosciences (H&B) business, with the exception of food protection, and IFFs legacy Health Ingredients and parts of Natural Products Solutions. Pharma Solutions will comprise N&Bs current Pharma Solutions business, with approximately $800 million in pro forma 2019 net sales for the combined company.

The executive committee of the combined company will include Andreas Fibig as chairman and CEO. Rustom Jilla, IFFs executive vice president and CFO, will remain in that role at the combined company. Matthias Haeni, who has led IFFs flavors division since 2014, will be named president, Taste, Food & Beverage. Amy Byrick, who currently oversees N&Bs specialty food ingredients business, will become president, Taste, Food & Beverage. Nicolas Mirzayantz, who has led IFFs fragrance business since 2006, will become president, Scent of the combined business. Simon Herriott, currently platform leader of N&Bs health and biosciences unit, will be president, Health & Biosciences of the combined business.

As MRC wrote previously, in January, 2021, Chilean oil refiner ENAP Refinerias S.A. selected BELCO scrubbing technology, licensed by DuPont Clean Technologies (DuPont), to improve emissions control from its 31,449 BPSD fluid catalytic cracking (FCC) unit at the Aconcagua refinery.

We remind that DuPont is investing USD400 million in the production capacity of Tyvek nonwoven fabric made from high density polyethylene (HDPE) at its site in Luxembourg. A new building and a third work line at the production site will be constructed. The launch of new facilities is scheduled for 2021.

According to MRC's ScanPlast report, November estimated HDPE consumption in Russia rose to 125,950 tonnes from 58,330 tonnes a month earlier. ZapSibNeftekhim reduced its export polyethylene (PE) sales. Overall HDPE shipments to the Russian market totalled 1,096,510 tonnes in the first eleven months of 2020, up by 5% year on year. Production and exports grew significantly, whereas imports fell by 31%.

The DuPont Corporation, founded in the USA in 1802, operates in more than 70 countries. The company produces specialty chemicals, offers goods and services for agriculture, food production, electronics, communications, security and protection, construction, transport and light industry. In Russia, DuPont has 100% control over the DuPont Khimprom plant since 2005, and in 2006 established a joint venture between DuPont - Russian Paints and Russian Paints.
Author:Margaret Volkova
Tags:PE, crude and gaz condensate, HDPE, petrochemistry, DuPont, Luxembourg, Russia, USA.
Category:General News
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